Virus hits business confidence

Business confidence in central New Zealand has plummeted to record lows – and that was before the lockdown was announced.

Quarterly survey results from the Wellington Regional Chambers of Commerce and Business Central revealed 60 per cent of businesses expected New Zealand’s economy to be worse in 12 months, and 45 per cent expected their region’s economy to be in worse shape.

The survey included responses from 437 businesses in central New Zealand between Nelson and Gisborne, and took place between March 5 and 20.

It asked businesses to name the biggest barrier or issue they were facing at the time, to which almost 48 per cent mentioned the impacts of the Covid-19 outbreak.

‘‘The second-highest barrier to business, consumer behaviour (14 per cent), is in direct relation to Covid-19, with respondents finding clients and customers more hesitant when purchasing goods and services due to the current uncertainty,’’ Chamber of Commerce chief executive John Milford said.

Finding skilled labour was normally the biggest barrier for businesses, but that had dropped to third on the list following the coronavirus outbreak, the survey found.

When asked specifically about the impact of the outbreak on their businesses, 97 per cent said it would have some impact, while 57 per cent said it would have a serious or significant impact.

The chamber expected that number would be higher because of the lockdown.

The latest survey also asked businesses about how prepared they believed they were for disruptions, with 21 per cent saying they had excellent contingency planning, but 17 per cent saying they had no contingency plans.